Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
9 {6 h3 M# D& S/ T: O4 dexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
; t) y' K6 L# z" C# kthese oil producer will go bankrupt or out of the business even if
; v2 u5 F$ ^- d' D% Rcrude prices improves. This implies also to good names such as Shell,
& K$ Z, g, J! T/ J7 ^5 i- v( AEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
1 ^; `1 Z1 ]$ ]# v# {months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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* E. i) C! S+ ]% lThere are several reasons the price of oil is decreasing in the face
4 y) }6 ^* u2 J7 aof so much news. These reasons are:
$ X& \) @8 I+ p1 i2 N" Y
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0 x! t# p9 v7 f0 w1. New oil has been found in Canada, Montana, North & South Dakota and
4 Z( L4 J2 L; T! p4 ^! rin the ocean near Brazil. Each of these oil fields has more oil than
; k$ p8 p0 N: k% o/ T% IArabia.
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+ }9 {) x7 U4 Z2. New natural gas has been found in Pennsylvania and West Virginia.
- o: o0 s  K, J; {1 P+ v0 p; M6 x7 @This is the largest find in North America.
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3 @: Z# C, q; o& C- g* E' r. P3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


0 d( ^, L/ f- ^1 m5 f2 u4. Production of bio-fuels is beginning to reach critical mass. Bio
1 Q" K3 ~- B, A# u( Z9 m$ lfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
0 T" R; o$ }8 A8 N" Z. Rracing to produce bio fuels.
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4 _0 w: l% r# O8 u3 i: O5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
: v9 f5 y# i: Cproducing 30,000 gallons of bio-diesel per day from pork fat.

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# y4 s( H# k4 J! R  Q6. There are 99 nuclear reactors in various stages of planning and
$ f+ o3 a  X& Z8 R7 Bconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
" w4 v* q! {7 o; u* Y0 T0 G/ Rwill replace oil.
2 N* C2 |/ U- h$ y
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$ s. A+ T1 t2 _8 K7. Every company in any form of transportaion business is replacing
8 H8 ^+ y" t& Q# {) W5 v* {( Aolder equipment such as trucks, airplanes, train engines, ships, etc.
! N! `! X8 U6 fwith new more fuel efficient equipment. Airlines and railway companies
# `/ x' ]0 L0 [& m, ~are experiencing 20% to 25% better fuel econony with the new
equipment.


. b; z4 S8 H, B' X, V* R6 ~Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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$ h$ r! @. k5 c$ O. q! _9 K8. Cities and counties throughout the US are selling the rights to
  o- V( q& H# j  ecapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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9 S) G: P: B" }% r* F: N6 p' v9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
" `7 a; `0 \+ q3 y7 P5 Goil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


& [; K7 J( ^! ^4 P+ D4 WEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
; v* a$ v5 y' t( ]) G1 v* Hto control oil prices.
0 s: @+ d, x3 v5 D

With the above scenario, I still believe that there are under
3 A! Z+ r; G, `5 X* ?performed OIL companies and probably they are yet to get the justified
6 Z0 m; K6 ~5 F% e- [/ Gvalue .....
/ L6 d: A5 O0 r" {0 b+ RIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only